Money world

Frank D’Angelo, whose former juice and beer companies collapsed under more than $120 million in debt, is buying back the assets of one of them.

A judge has approved a deal whereby a numbered Ontario company owned by D’Angelo’s family will purchase D’Angelo Brands, which is currently shut down and under court protection from creditors.

D’Angelo, president and chief executive officer of the numbered company, said in a brief interview yesterday his family wanted to keep the juice and energy drink maker after the court recently allowed a sale of its assets.

"We decided we would rather have it in our hands," he said. "I think it’s good."

Meanwhile, the future of the other insolvent company, Steelback Breweries, remains uncertain. Court filings show management has temporarily ceased operations and is looking at options.

D’Angelo, founder and former chief executive officer of D’Angelo Brands and Steelback, also did not rule out a return to brewing.

"At this time, I’m just concentrating on what we have ahead of us in the first quarter and then we’ll decide," said D’Angelo, who appeared in numerous Steelback television ads. "We’ll see what happens."

Details of the D’Angelo Brands deal, including how much the family paid for it, remain under court seal until completion.

However, court filings show the family provided a cash deposit of $297,000.

In allowing the sale and an extension of court protection until May 16, Madam Justice Sarah Pepall said the court supervisor monitoring the insolvent companies recommended the deal after a bidding process in which six parties made offers.

The company’s management also concluded the D’Angelo family proposal represented the "highest and best offer."

Wasanda Enterprises – controlled by generic drug magnate Barry Sherman – sought and gained court protection for D’Angelo and Steelback last November payday advances. The two firms alone owe Wasanda about $101 million plus another $20 million in accrued interest.

The financial health of the two companies has steadily deteriorated in recent years despite loans from Wasanda.

The two companies have acknowledged revenues didn’t meet projections; advertising and marketing costs did not reflect sales; production was inefficient and expenses too high and a strong Canadian dollar slashed margins on packing agreements with U.S. customers.

Wasanda gained protection a few weeks after D’Angelo’s unusual announcement that he had sold his "majority" stake in the two companies to his "financial partners" for an "undisclosed amount."

D’Angelo Brands and Steelback continued production but both firms shut down operations in December pending reviews.

The beverage company, which produces fruit juices and energy drinks with names such as "Cheetah Power Surge," has terminated about 110 workers.

Steelback, brewer of 11 brands, decided to close its small Tiverton brewery in central Ontario until the end of March because inventories can meet demand. It has cut more than 20 jobs there.

The company is also trying to sell a small Quebec brewery and D’Angelo Brands has closed a local restaurant called Mamma D’s.

The report from the supervisor monitoring the two companies’ operations showed D’Angelo Brands posted negative cash flow of almost $1 million in the 2 1/2 months ending Feb. 1. Steelback racked up almost $500,000 in negative cash flow in the same period. The companies have more than 400 creditors.

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